Hello Ward 8 Neighbours,
The Federal Government announced that the City of Hamilton will receive $93.5 million dollars related to the Housing Accelerator Fund.
For more details, please continue reading below…
The Housing Accelerator Fund provides incentive funding to municipal governments encouraging initiatives aimed at increasing housing supply. It also supports the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse.
At a recent announcement of the federal government’s commitment to the City of Hamilton, the Federal Housing Accelerator Fund will provide $93.5 million in funding to Hamilton by March 31, 2027. Originally, the City’s application was for $123million.
With this announcement, Hamilton is the third city to be a successful applicant, following the City of London ($74 million) and the City of Vaughan ($59 million).
With the support of the federal investment, the City of Hamilton has set a target of increasing its historical average of newly constructed residential units by 2,600 over the next three years. That is approximately 900 net new residential units per year, over the next three years, beyond the City’s historical average.
The goal of the federal government’s Housing Accelerator Fund (HAF) is to fast track the development of at least 100,000 new homes across Canada. Back in March, the Canadian Mortgage Housing Corporation (CMHC) released the application guidelines for the HAF. Through the HAF, the federal government is seeking innovative action plans from local governments to accelerate the construction of new housing. The HAF provides upfront funding to implement those plans, as well as additional funds upon delivering results.
At the May 31, 2023 General Issues Committee meeting, City staff presented a report to Council that included a recommended Housing Action Plan and HAF application. As required by CMHC, the City’s report was presented to Council in camera. The report was approved by Council on June 7, 2023. A week later, the City submitted its application to the federal government.
Housing Accelerator Fund Investment
With the support of the federal HAF investment, the City of Hamilton has set a target of increasing its historical average of newly constructed residential units by 2,600 over the next three years. That is approximately 900 net new residential units per year beyond the City’s historical rate.
The HAF agreement will provide $93.5 million in funding to the City to March 31, 2027. The City’s funding allocation and schedule of payments as set out in the Contribution Agreement is summarized below, with the first installment expected by the end of October.
The City of Hamilton’s Housing Action Plan
As part of its HAF application, the City was required to submit a Housing Action Plan identifying City initiatives, to be funded through the HAF, that would increase construction of new housing. The City’s Housing Action Plan, as approved by the federal government, includes the following initiatives:
- Acceleration Program for Accessory Dwelling Units and Multi-plex Conversions
The City will create a new “Acceleration Team” to expedite the review and approval of applications for accessory dwelling units such as basement apartments and laneway homes, and for the conversion of existing dwellings into multi-unit dwellings. The City will also create new information materials, supports and financial incentives such as fee waivers for homeowners who wish to create these units. An additional incentive program will be created for the creation of affordable accessory dwelling units.
- Rapid Transit Multi-Residential Rental Housing Grant Program
The City will create a new incentive program to support the creation of new low to moderate market purpose-built rental housing units along the City’s Rapid Transit Network.
- Land and Property Disposition and Acquisition Program for Housing
The City will create a dedicated team within the City’s Real Estate Section to identify and implement opportunities for disposition of City-owned lands and acquisition of under-utilized lands and properties for the purpose of developing affordable housing. The team will also identify opportunities for the integration of new housing as part of future municipal building projects.
- New and Enhanced Incentive Programs for Housing Development
The City will create or expand programs and incentives that promote the development of housing across the City. This will include implementing the necessary programs, changes to City policy frameworks, and enhancements to existing incentive programs with a view to meeting the current challenges facing proponents of market housing, rental housing and affordable housing.
- Housing Acceleration Zoning Reform Program
The City will continue and expand its ongoing work to update the City’s zoning and land use policies to provide as-of-right permissions for new housing development. This includes continuing to extend as-of-right zoning permissions for conversions and new construction of missing middle housing (e.g. duplexes, triplexes, fourplexes), reducing or eliminating minimum parking requirements, and pre-zoning transit corridors and urban nodes.
- Planning Review and Studies for Rapid Transit Corridors
The City will expedite the completion of planning studies along the City’s rapid transit corridors to support higher density and mixed-use development, and to identify the infrastructure needed to support to growth.
- Support Housing Development on Remediated Brownfield Sites
The City will expand its existing Environmental Remediation and Site Enhancement (ERASE) program to provide enhanced financial assistance for the remediation of brownfield lands to support new housing development, with a particular focus on non-profit affordable housing developments.
City Investment of Housing Accelerator Funds
The $93.5 million investment from the Housing Accelerator Fund is anticipated to be invested as follows:
Approximately $7.5 million over four years for staffing to implement the Housing Action Plan initiatives to accelerate new housing development
Approximately $30 million over four years to implement and fund the Housing Action Plan’s new programs and incentives for the development of new rental housing and affordable housing
Approximately $56 million over four years for new investments in affordable housing and growth-related infrastructure needs. As part of the approval of the May 31, 2023 report by the General Issues Committee, Council approved the following allocation for these funds:
- 15% contingency to support Housing Accelerator Fund initiatives extending beyond 2026 as required by CMHC
- 45% to the City’s Affordable Housing Funding Program to support capital investment in the development of new not-for-profit led affordable housing developments
- 40% to be allocated to eligible Growth-Related Infrastructure and Growth Planning projects to support new housing
Staff will be reporting to Council as part of the 2024 Budget process with respect to the estimated amounts available for investment, as well as recommended priorities for investment.